CMBS holders fight proposed Extended Stay reorganization plan

A brewing dispute over the proposed bankruptcy reorganization of David Lichtenstein's Extended Stay Hotels chain could bring into the open some aspects of commercial mortgage-backed securities, or CMBS, that haven't gotten much attention before. The owners of a junior class of Extended Stay CMBS bonds say the deal Lichtenstein made with several lenders is invalid because those lenders had no authority to speak for the CMBS investors.